Stewart-Peterson Market Commentary

Closing Commentary - December 11, 2017

Top Farmer Midday Update 12-11-17

CORN: Corn futures are lower at mid-session with Mar corn down 3-1/2 cents to 3.49-1/4, just 1/2 cent off the contract low. The Dec corn contract, at 3.37-1/2, will expire this Thursday. We’ll get a monthly Supply/Demand report from the USDA tomorrow with pre-report estimates not veering far from the November data. U.S. corn ending stocks are seen coming in around 2.478 bil bu compared to 2.487 last month. Today’s Weekly Export inspections came in at 658,403 tons while running behind for the year. In other tender activity, Mexico bought 110,000 tons of corn; S. Korea bought 68,000 tons of optional-origin corn. Outside markets have crude up 22 cents, the dollar down 15 points.

SOYBEANS:Soybean futures are 5 cents lower in quiet trading as the market struggles under the weight of more favorable South American weather talk and expectations for a non-supportive USDA report tomorrow. Pre-report estimates for ending stocks are shaping up near 438 mil bu, up from 425 mil last month. In South America, Brazilian farmers are expected to produce 112.9 mil tons of soybeans in the 2017-18 crop, up from 110.2 mil tons seen in a November forecast, consultancy AgRural said; Brazil's estimated soybean planted area will be 34.8 mil hectares, up from 34.655 mil in AgRural's November forecast. Weekly Export Inspections were 1,229,817 tons. In a morning announcement, USDA said 132,000 tons of beans were sold to an unknown destination.

WHEAT:Winter wheat futures are lower and making new contract lows again today. Mar CBOT and KC contracts are down 5 to 6 cents with new lows now at 4.12-1/2 and 4.12-1/4, respectively. Nearby Dec contracts expire on Thursday and, at this juncture, look to go off the board sub-$4.00. The latest Commitment of Traders report showed an increase in open interest indicating speculative money continuing to pour into the short side of these markets, keeping downward momentum intact. Weekly Export Inspections were 316,587 tons, in line with the previous week while running behind a year ago and behind current USDA projections.

CATTLE:Cattle futures are evenly weaker today while making another round of multi-week lows, and seemingly guiding cash downward. Last week’s cash market trade in the $117 to $118/cwt range was $3.00/cwt below the previous week. Dec live cattle are off .250 to 115.325. Feb is off .350 to 117.925, and Mar feeders are down .275 to 143.050.

HOGS:Hog futures are sharply lower with most contracts losing more than $1.00/cwt. Dec is unchanged at 63.675. Feb is down 1.350 to 67.500 while forming an outside bearish reversal on the daily chart. April is down 1.100 to 72.025. Cash hog values are expected to remain mixed with most bids expected steady to .50/cwt lower today after sliding last week.

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